Correlation Between SentinelOne and SpringWorks Therapeutics
Can any of the company-specific risk be diversified away by investing in both SentinelOne and SpringWorks Therapeutics at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining SentinelOne and SpringWorks Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and SpringWorks Therapeutics, you can compare the effects of market volatilities on SentinelOne and SpringWorks Therapeutics and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in SentinelOne with a short position of SpringWorks Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and SpringWorks Therapeutics.
Diversification Opportunities for SentinelOne and SpringWorks Therapeutics
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SentinelOne and SpringWorks is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and SpringWorks Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SpringWorks Therapeutics and SentinelOne is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on SentinelOne are associated (or correlated) with SpringWorks Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SpringWorks Therapeutics has no effect on the direction of SentinelOne i.e., SentinelOne and SpringWorks Therapeutics go up and down completely randomly.
Pair Corralation between SentinelOne and SpringWorks Therapeutics
If you would invest 4,699 in SpringWorks Therapeutics on October 1, 2025 and sell it today you would earn a total of 0.00 from holding SpringWorks Therapeutics or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
SentinelOne vs. SpringWorks Therapeutics
Performance |
| Timeline |
| SentinelOne |
| SpringWorks Therapeutics |
Risk-Adjusted Performance
Weakest
Weak | Strong |
SentinelOne and SpringWorks Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and SpringWorks Therapeutics
The main advantage of trading using opposite SentinelOne and SpringWorks Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, SpringWorks Therapeutics can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in SpringWorks Therapeutics will offset losses from the drop in SpringWorks Therapeutics' long position.| SentinelOne vs. Apple Inc | SentinelOne vs. Alphabet Inc Class A | SentinelOne vs. NVIDIA | SentinelOne vs. SPS Commerce |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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